Description

NSE adds two securities to Enhanced Surveillance Measure Stage I with 100% margin requirements and trade-for-trade segment shift effective August 11, 2025.

Summary

NSE has updated its Enhanced Surveillance Measure (ESM) framework, adding two securities to ESM Stage I effective August 8, 2025. The affected securities will face minimum 100% margin requirements and will be shifted from Rolling Settlement to Trade-for-Trade segment starting August 11, 2025.

Key Points

  • Two securities added to ESM Stage I: INNOVANA (Innovana Thinklabs Limited) and ORTINGLOBE (ORTIN GLOBAL LIMITED)
  • 100% minimum margin requirement applies to all open positions as of August 8, 2025, and new positions from August 11, 2025
  • Securities will shift from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST)
  • No securities are being excluded from the ESM framework
  • No securities are moving between ESM stages
  • ESM framework operates in conjunction with other surveillance measures

Regulatory Changes

  • Enhanced margin requirements of minimum 100% for ESM Stage I securities
  • Segment classification change from Rolling Settlement to Trade-for-Trade for affected securities
  • Securities moving to Stage II will be under Trade-for-Trade with 2% price band under Periodic Call Auction

Compliance Requirements

  • Market participants must ensure compliance with 100% margin requirements for ESM Stage I securities
  • Adherence to Trade-for-Trade settlement mechanism for affected securities
  • Compliance with all other prevailing surveillance measures imposed by exchanges

Important Dates

  • August 8, 2025: ESM Stage I classification effective date
  • August 11, 2025: Securities shift from EQ/SM to BE/ST segment
  • August 11, 2025: 100% margin requirement applies to new positions

Impact Assessment

  • Trading Impact: Limited to two specific securities with restricted trading through Trade-for-Trade mechanism
  • Margin Impact: Significant increase in margin requirements to 100% minimum for affected securities
  • Liquidity Impact: Potential reduction in liquidity due to Trade-for-Trade restrictions
  • Market Participant Impact: Increased capital requirements for trading these securities
  • Clarification: ESM shortlisting is purely for market surveillance and not an adverse action against the companies

Impact Justification

Affects specific securities with increased margin requirements and trading restrictions but limited to two securities